Inpex LNG Workers Vote for Strike Action in Australia
Over 98 percent of workers at the Ichthys facility approved industrial action over pay and conditions. Potential strikes may begin on May 15 after mediation.
Workers at the Ichthys liquefied Natural Gas facility in Australia have voted overwhelmingly to authorize industrial action, a move that threatens to further strain global energy markets already reeling from geopolitical tensions. The ballot, conducted by the Offshore Alliance, saw over 98% of participating members support a range of work stoppages in a dispute over pay and employment conditions.
The facility is operated by INPEX CORP, which recently saw a proposed pay deal rejected by its workforce. The Offshore Alliance, a coalition comprising the Maritime Union of Australia and the Australian Workers Union, represents approximately 95% of the 430 workers at the site. Union representatives argue that the current contract offers do not align with established industry benchmarks for wages.
The results of the ballot are clear: a huge majority of Offshore Alliance members are in favour of exercising their right to take strike action in pursuit of their bargaining claims.
While workers are legally permitted to begin strikes as early as May 7, the union has agreed to defer any action until May 15 to allow for six days of intensive negotiations. The potential disruptions include work stoppages lasting from 30 minutes to full 24-hour periods. This development is being monitored closely in Japan, which relies on the 9.3 million metric-ton-a-year Darwin plant as a primary energy source. Japanese utilities are particularly vulnerable as they prepare for peak summer demand amid broader supply concerns.
Global energy security is already under significant pressure. Since late February, more than 20% of the world's LNG supply has been restricted due to conflict involving Iran and the subsequent closure of the Strait of Hormuz. The current situation draws parallels to 2023, when industrial action by the same union group at a facility owned by CHEVRON CORP caused significant volatility in international gas prices.
Inpex has not provided an immediate comment following the vote, though a spokesperson previously confirmed that the majority of eligible employees had turned down the company's latest offer.s latest offer. latest offer. The upcoming talks will be critical in determining whether the facility can avoid a shutdown that would impact one of the world's most vital energy corridors.
